ECB WATCH | Reaffirming March’s assessment and commitment

Summary

The ECB reaffirmed the assessment for the Euro Area macro-economic outlook put forth in March's meeting. The ECB left monetary policy as well as forward guidance unchanged, with President Lagarde striking a note of cautious optimism over the medium term outlook while being cognizant of near term downside risks.

Key points

• Key points:
• Near term economic risks still to the downside but seem more balanced over the medium term
• Scaling back PEPP purchases? would be “premature”
• Fall of 2021 is the deadline to deliver on the Strategy Review

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